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46th ISTE Annual National Convention & National Conference 2017
International Journal of Advance Research and Innovation (ISSN 2347 – 3258)
Measuring Small and Medium Enterprise Inclination
to Technological Innovation
Pawandeep Singh
Gulzar School of Management
Gulzar Group of Institutes
Ludhiana, Punjab-141401(INDIA)
[email protected]
Abstract— There is a need to measure innovation because it is often cited as a key value or emphasis to promote competitiveness, productivity
and efficiency. Almost all the countries in the world are exploring towards innovation and technology but only few are greatly reliable on this.
No doubt, Innovation is very hard to measure as it is intangible and difficult to visualize. The project proponent will be communicating with
SMEs during data gathering process and help to increase the awareness of SMEs on Innovation. The outcome of the project may assist SMEs
indentify the critical success factors for developing technological innovation capabilities. This would also help to increase the productivity of
SMEs which is presently low as compare to other advance countries. The project will help various agencies in evaluating the effectiveness of
their programs by utilizing the research instrument designed in this project. The Outcome that will be developed as a result of this project can
also be used as a guide during program planning.
Keywords- Innovation, Competitiveness, Productivity, SMEs
I. INTRODUCTION
India is profoundly heterogeneous as far as the extent of the
undertakings, assortment of items, administrations and levels
of innovation.
Micro, Small and Medium Enterprises (MSME) division has
risen as an exceedingly energetic and dynamic area of the
Indian economy throughout the most recent five decades.
MSMEs not just assume critical part in giving extensive
business openings at relatively bring down capital cost than
expansive enterprises additionally help in industrialization of
country and in reverse regions, accordingly, lessening
territorial lopsided characteristics, guaranteeing more
evenhanded appropriation of national salary and riches.
MSMEs are reciprocal to extensive enterprises as subordinate
units and this segment contributes immensely to the financial
improvement of the nation.
This segment contributes almost 8 percent of the nation's
Gross domestic product, 45 percent of the assembling yield
and 40 percent of the fares. It is evaluated The Ability to
Engage MSMEs– Activities in Exchange Advancement that
regarding esteem, the division contributes around 44.70% for
every penny of the aggregate stock fares of the nation amid
2014-15. They are broadly scattered the nation over and
deliver a various scope of items and administrations to address
the issues of the neighborhood advertises, the worldwide
market and the national and global esteem chains. India
concurred high need to Small and Medium Enterprises
(SMEs) from the earliest starting point and sought after bolster
arrangements to make these endeavors reasonable, lively and
over the long haul, these have turned out to be real donors to
the Gross domestic product. Additionally, the MSME area has
weathered and conquers firm rivalry in the post progression
period in the local and worldwide field.
The Micro, Small and Medium Enterprises (MSMEs) assume
an essential part in the financial and social improvement of the
nation, regularly going about as a nursery of business
enterprise and advancement. They additionally assume a
noteworthy part in the improvement of the economy with their
powerful, proficient, adaptable and creative entrepreneurial
soul. The MSME segment contributes essentially to the
nation's assembling yield, work and sends out and is credited
with creating the most elevated business development and in
addition representing a noteworthy share of modern generation
and fares. MSMEs have been all inclusive considered as a
motor of monetary development and as key instruments for
advancing impartial advancement. The MSME division in
II. SMALL SCALE INDUSTRIES IN INDIA
Prospering in the midst of a testing domain, the Small and
Medium Enterprises (SMEs) of India encountered a few highs
and lows in the previous couple of years. With the Indian
economy anticipated that would rise as one of the main
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Gulzar Group of Institutes, Ludhiana, Punjab-141401 (INDIA)
46th ISTE Annual National Convention & National Conference 2017
International Journal of Advance Research and Innovation (ISSN 2347 – 3258)
economies on the planet and prone to end up distinctly a $5
trillion economy by 2025, noteworthy driving force is being
given to fortify the foundation of our economy the SME
division. Fathoming the importance of the SME segment
versus loaning numbers to the employment showcase,
commitment to Gross domestic product and cultivating
business enterprise and development, various activities by our
present government have been the highpoints. As indicated by
the Fourth All India Registration of MSME 2006-07, the
MSME area gives work to roughly 805.23 lakh people through
an expected 361.76 lakh endeavors. 55.34% of these
endeavors were in country regions while 44.64% are in urban
regions. 68.21% of the undertakings were occupied with
administrations with staying 31.79% occupied with
assembling. These undertakings are principally occupied with
exercises relating to discount/retail exchange; repair of
individual and family merchandise; fabricate of sustenance
items and drinks; make of wearing clothing; dressing and
coloring of Hide; produce of materials; inns and eateries; deal,
upkeep and repair of engine vehicles and cruisers; retail offer
of car fuel; make of furniture; training; and different
organizations/administrations. 1.2 The nation is confronting
difficulties of giving work and business to the developing
populace. The MSME area has an incredible potential to
address the same.
IV. IMPORTANT DEVELOPMENTS IN 2015-2016
Working in tandem with the larger goal of pushing for
economic growth, the implementation of many reforms made
the SME/startup space relatively bullish in 2016 but not
necessarily related. These include reimplementation of Public
Procurement Policy, Pradhan Mantri MUDRA Yojana, Make
in India, Startup India, and Skill India. Aimed at increasing
growth of manufacturing sector by 12-14% per annum and
increase its share of GDP to 25% by 2025, the government
plans to make financial and technical support more accessible.
Also, the announcement to implement GST Bill in 2017 is a
landmark decision that will help solve long existing challenges
prevalent in the current taxation system. For SMEs, GST bill
will help eradicate indirect taxes, have more transparency of
tax process, draw projections of production cost and gain easy
access to new geographies for business expansion. MSMEs as
the driver of socioeconomic development of the country is set
to see certain trends, some upcoming and some established,
that will play out in 2017, touted to be an interesting year.
Those who will survive the trenches of moves like
demonetization are most likely to witness a smoother course
ahead.
V. SME TRENDS IN 2017
III. DETERMINANTS OF TECHNOLOGICAL
INNOVATION
A.
RISE OF SME FOCUSED B2B ECOMMERCE:
The advent of advanced technology is opening newer channels
for businesses across several sectors. This is particularly true
for B2B ecommerce firms focused on the Indian SME sector.
Hitherto overlooked, the presence of innovative technological
platforms is bringing on board a rising number of small
players including the neighbourhood-kirana store. This is a
win-win situation for all involved enabling smoother
transactions, procurement of raw materials and industrial
goods, and forging a better connection between established
brands and small shop owners. With SMEs in India touted to
be a $25.8 billion market for emerging technologies by 2020,
the rise of B2B ecommerce is a trend that will certainly gain
more momentum in 2017.
It is vital to comprehend what prompts firms to attempt
mechanical developments? The accessible writing on the
determinants of mechanical advancement of firms is assorted
and complex. Notwithstanding, comprehensively, there are
two noteworthy ways to deal with depict mechanical
advancements: they are delegated "request force" and
"innovation push" speculations of development. From one
viewpoint, financial analysts have frequently stressed the part
of interest in provoking firms to attempt mechanical
developments. They contended that 'need is the mother of
development' and without a market need, an advancement is
probably not going to rise and regardless of the possibility that
it rises, it won't be effective. Subsequently, it is the market
request that is principally in charge of development.
Researchers, then again, have firmly worried on the part of
unique Innovative work (Research and development) in
bringing out mechanical (item/prepare) advancements.
Without satisfactory logical and mechanical ability, a firm
won't be in a position to embrace innovative advancements,
regardless of the possibility that it has recognized a distinct
market for its item. In this way, researchers have tended to
disregard or put down the part of the market in advancement.
B.
AMALGAMATION OF ECOMMERCE AND
MCOMMERCE:
Advanced change is no longer a favor term versus Indian SME
obligingness quicker entrance of Web. At the point when this
is combined with broad utilization of cell phones which are
turning out to be increasingly reasonable, Indian SMEs are
encountering concurrent selection of web and in addition
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Gulzar Group of Institutes, Ludhiana, Punjab-141401 (INDIA)
46th ISTE Annual National Convention & National Conference 2017
International Journal of Advance Research and Innovation (ISSN 2347 – 3258)
versatile based innovation. According to an EY report,
organizations have upgraded their emphasis on versatility as
against social, bringing about a change from Social-Portability
Investigation and Cloud (S-M-A-C) to Portability
Examination Cloud and Social (M-A-C-S). Macintoshes
advances are by and large promptly embraced by second era
business visionaries willing to upgrade their income by
bringing in operational proficiency and change client
encounter. The Indian SME area is probably going to use a
union of internet business and mcommerce as a flawless
formula for achievement in 2017.
2017 is execution of GST bill. Usage of GST Bill is required
to profit MSMEs with easier duty structure as well as with
angles, for example, enhanced innovation selection so as to
follow GST framework. The 'One Country, One assessment'
approach will make India an open market helping SMEs
investigate new markets with no or low section boundaries and
experience business extension. Along these lines, the up and
coming GST bill is relied upon to upset the Indian assessment
framework and offer the SME part an equivalent balance when
contrasted with their greater more settled partners.
VI. DIGITAL BANKING FOR SMES IN INDIA
C.
ENHANCING SME LENDING WITH GROWTH
IN FINTECH FIRMS:
Digital Banking could be a potential distinct advantage for
Small and medium Enterprises (SMEs) in India. The
Administration's Advanced India activity, with its concentrate
on
strengthening,
improvement,
development
and
administration, is adapted towards getting little and medium
organizations online for worldwide aggressiveness. As per a
report by KPMG-Snapdeal, SMEs that utilization the web
broadly tend to send out roughly twice as much by fare esteem
when contrasted with SMEs utilizing the web sparingly. SMEs
are thought to be, to some degree, the foundation of India's
economy. As per the SME Assembly of Business, 3.6 crore
SMEs contribute 8 for every penny to India's Gross domestic
product. The part's commitment to India's assembling yield is
45 for each penny and commitment to fares, 40 for every
penny. Almost 8 crore individuals are utilized by SMEs in
India. The most recent in the line of associations to give a
computerized push to the SME segment in India is HDFC
Manage an account with its as of late propelled advanced bank
for SMEs in the nation.
"We trust that this will change the way SMEs bank today. At
the heart of it is speed, accommodation, straightforwardness
and consistency. Business people can use the time spared to
concentrate on their center business without worrying about
their managing an account needs. This will enhance their
proficiency and efficiency. Given the commitment these
individuals make to the nation's Gross domestic product and
business creation, this development is huge." Through the
Computerized SME Bank, customers can get one perspective
of all their acknowledge lines for HDFC Bank and the
exceptional resources. They can even get some answers
concerning the development date of letter of credit and bank
ensures. Clients can pay and get cash without utilizing a check
book, get letters of credit, bank ensure, remote money outward
settlements, import charge under accumulation on the web.
Extremely imperative reports like stock proclamations,
protection, and financials can be transferred for smooth
continuation of credit offices. Also, clients are given important
A major constraint in the growth of the SME sector has been
non-availability of easy finance. Not all little and medium
endeavors discover support with conventional banks with
regards to loaning cordiality absence of experience,
nonappearance of guarantees and foundation, poor financials,
and little ticket estimate. Given their critical online nearness, a
few advanced fintech players are making it helpful for the
SMEs to get advances. The year 2017 will encounter a surge
in NBFCs with uncommon concentrate on offering altered
credit arrangements on online stages. Making a disturbance in
the business and for good, these option loaning organizations
break down credit value of the merchants utilizing
examination and other filtering measurements like their deals
and satisfaction records and can dispense advances in less than
48 hours. Actually, a portion of the banks like Bank of Baroda
is likewise cooperating with new age Fintechs to extend their
range particularly in the SME segment.
D.
GOVERNMENT INITIATIVE, A NOTEWORTHY
LIFT
The MSME part, recognized as the foundation of the India
economy, is further anticipated that would contribute
essentially to India's developing Gross domestic product. The
division will definitely bolster India to enhance country's
money related consideration and alleviate the urban rustic gap.
Likewise, it is normal that by 2020, India will have the biggest
occupation prepared, youth populace on the planet and with
ideal business biological community in the assembling
segment it won't just create work of huge level additionally get
to be distinctly hot bed of entrepreneurial exercises. Our
legislature understands the desperation for giving a quick
paced development to MSME area and hence, 2017 will
additionally witness reinforcing of current strategies and
acquaintance of new activities with enhances the business
environment for MSMEs. The most anticipated change in
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Gulzar Group of Institutes, Ludhiana, Punjab-141401 (INDIA)
46th ISTE Annual National Convention & National Conference 2017
International Journal of Advance Research and Innovation (ISSN 2347 – 3258)
investigation based offers and tickers and alarms of
reestablishment/expiry dates to encourage SMEs in auspicious
entries.
continuously undergoing a change with the rapid changes in
technology and consumer preferences. Marketing, a strategic
tool for business development, is critical for the growth and
survival of MSMEs. Due to lack of information, scarcity of
resources and unorganized ways of selling/ marketing, MSME
Sector often faces problems in exploring new markets and
retaining existing ones. Such asymmetries in information, not
aware of the new market where they may sell their products
and buyer also having lack of knowledge about the products
manufactured by MSMEs result in severe impediments to the
growth and survival Special Article 30 Laghu Udyog
Samachar of MSMEs in a healthy competitive environment.
MSMEs do not have sufficient resources at their command
and, therefore need institutional support for providing these
inputs in the area of marketing. Marketing Assistance and
Technology Upgradation (MATU) Scheme is a strategic
initiative for adoption of Modern Marketing techniques by
MSMEs consistent with the requirement of global market. It
involves the following eight subcomponents for which
Government of India (GoI) funding assistance will be
available.
VII. GUIDELINES ON PRIME MINISTER’S
EMPLOYMENT GENERATION PROGRAMME (PMEGP)
Government of India has approved the introduction of a new
credit linked subsidy programme called Prime Minister’s
Employment Generation Programme (PMEGP) by merging
the two schemes that were in operation till 31.03.2008 namely
Prime Minister’s Rojgar Yojana (PMRY) and Rural
Employment Generation Programme (REGP) for generation
of employment opportunities through establishment of micro
enterprises in rural as well as urban areas. PMEGP will be a
central sector scheme to be administered by the Ministry of
Micro, Small and Medium Enterprises (MoMSME). The
Scheme will be implemented by Khadi and Village Industries
Commission (KVIC), a statutory organization under the
administrative control of the Ministry of MSME as the single
nodal agency at the National level. At the State level, the
Scheme will be implemented through State KVIC
Directorates, State Khadi and Village Industries Boards
(KVIBs) and District Industries Centres (DICs) and banks.
The Government subsidy under the Scheme will be routed by
KVIC through the identified Banks for eventual distribution to
the beneficiaries / entrepreneurs in their Bank accounts. The
Implementing Agencies, namely KVIC, KVIBs and DICs will
associate
reputed
Non
Government
Organization
(NGOs)/reputed autonomous institutions/Self Help Groups
(SHGs)/ National Small Industries Corporation (NSIC) /
Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra
Yojana (RGUMY), Panchayati Raj institutions and other
relevant bodies in the implementation of the Scheme,
especially in the area of identification of beneficiaries, of area
specific viable projects, and providing training in
entrepreneurship development Advertising Help and
Innovation Upgradation in Smaller scale, Little and Medium
Endeavors.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Technology Upgradation in Packaging.
Skill Upgradation/ Development for modern
marketing techniques.
Competition Studies.
Special component for North –Eastern Region.
New Markets through State District level local
Exhibition/Trade fairs.
Corporate Governance Practices.
Marketing Hubs.
IX. INITIATIVE FOR MAKE IN INDIA
The MSME of India would be the support for the "Make in
India" vision. MSMEs are the spine for the current and future
high development organizations with both residential and
outside organizations putting resources into the "Make in
India" activity. The new wave MSME ought to empower the
improvement of a business eco framework that empowers and
consistently bolster business that are adapting to convey the
correct item, the correct quality, the correct arrangement and
the correct administration at an aggressive cost, both in local
and global markets. The "Advanced India" upset additionally
gives an extraordinary chance to advance MSME support in
the Data, Correspondence and Media transmission (ICT)
segment, in accordance with the administration vision. It is
similarly essential that MSME fragment creates in every
aspect of agribusiness, assembling and administrations
segments in light of the fact that each of these areas will keep
on being applicable to the general Gross domestic product
development and also business era. The MSME part will go
VIII. MARKETING ASSITANCE & TECHNOLOGY
UPGRADATION IN MICRO, SMALL AND MEDIUM
ENTERPRISES.
The Micro, Small and Medium Enterprises (MSMEs) in India
produce a diverse range of products with the very simple
products produced by household enterprises at one end of the
spectrum and highly advanced ones of the other end. With
globalization and changes in communication technologies,
new challenges and opportunities have arisen for MSMEs. The
concept and techniques of marketing have also been
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Gulzar Group of Institutes, Ludhiana, Punjab-141401 (INDIA)
46th ISTE Annual National Convention & National Conference 2017
International Journal of Advance Research and Innovation (ISSN 2347 – 3258)
about as an impetus to realize this financial change. India's
Gross domestic product is required to touch 8.5 for each
penny, with the nation liable to be a USD 5 trillion economy
by 2025.
marketing are needed to be encouraged. Even these Small
Scale producers are unable to attract the professionals because
of lack of their financial resources. Small Units operating at
micro levels are lacking behind in obtaining relevant
international support. It is quite evident that innovations and
new initiatives are being taken by government and private
bodies for small scale industries to revive them. Quite
encouraging as is seen, there are numerous latest devices
which have assisted SSIs at very large extend.
X. INTELLECTUAL PROPERTY RIGHT FACILITATION
CENTRES FOR MSMES
The Scheme aims at enhancing awareness among MSMEs
about Intellectual Property Rights (IPRs) and to enable them
to take measures for protecting their ideas and business
strategies. M/o MSME also assists MSMEs in technology
upgradation and enhancing competitiveness for effective
utilization of IPR tools by MSMEs. These IPFCs are
providing computerized facilities for
(i)
Searching / Mapping, etc., with respect to patents,
industrial designs, trade secrets, etc.
(ii)
Basic information to file an application for grant of
patent Geographical Indications(GI), industrial
design, trademarks, etc.
(iii)
Facilitating in transfer and commercialization of
technologies
(iv)
Guidance in filling applications with National /
International agencies and
References
[1] http://www.enterpriseinnovation.net/article/digitalempowerment-could-be-potential-game-changer-smes-india2098559505
[2] http://economictimes.indiatimes.com/small-biz/sme-sector
[3] http://msme.gov.in/mob/Scheme-New.aspx
[4] https://corporate.indiamart.com/2016/08/12/technology-isthe-core-of-sme-innovation-emerging-business-forum/
Advice to beneficiaries on legal remedies on issues such as
infringement, duplication of patent industrial design, etc.
Since, the inception, more than 350 Awareness / Sensitization
Programmes, 100 Interactive Seminars / Workshops have been
Intellectual Property Right Facilitation Centres for MSMEs
conducted. These IPFCs have been instrumental in assisting
various MSMEs and individuals in filling IPRs under
appropriate regime. Signification highlight of work are as
follows: - 604 Patent applications have been filed. - 1143
Trade Mark Applications have been filed by MSEs. - 131
Applications for Industrial Design have been filed for innovate
design. - 652 Freedom to Operate (FTO) cases have been
facilitated. - 1191 Searches on Penetrability / Novelty have
been facilitated. - 26 Geographical Indication (GI)
applications have been filed through IPFCs. - 219 Copyright
applications have been filed. - 48 Special Studies have since
been completed.
[5] http://msme.gov.in/mob/SPMEGP.aspx
[6] http://msme.gov.in/WriteReaddata/DocumentFile/RevisedIC Scheme%20Guidelines%2016.12.2016_New.PDF
XI. CONCLUSION
Although there are a number of problems concerning SMEs
but it is quite evident that innovations and new initiatives are
being taken by government and private bodies for small scale
industries to revive them The main reasons of these problems
seem lack of infrastructural and operational facilities in
comparison to large, medium and other companies. Small
Industries are not using new machinery to produce quality
product swath latest designs. And clear policies relating to
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Gulzar Group of Institutes, Ludhiana, Punjab-141401 (INDIA)